Ivor Callely (Dublin North Central, Fianna Fail)
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Question 248: To ask the Minister for Transport the current levels of motor insurance premiums here; if he will provide comparison figures for 1997 and outline the issues that have assisted in the reduction of motor insurance costs; and if he will make a statement on the matter. [6433/07]

Martin Cullen (Waterford, Fianna Fail)
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The level of motor insurance premiums is measured by the CSO using as a base the costs obtaining in December 2001 which is allocated an index of 100. Using this scale, the costs for motor insurance in January 1997 measured 64.8 index points. From that date, costs rose to a peak of 108 index points in April 2003. Since April 2003 motor insurance costs have reduced and at December 2006, the index stood at 71.2 index points, a reduction of 34% over the period.

There are various factors contributing to this reduction. Since 2003, the introduction of the Personal Injuries Assessment Board has been a major step, as was the Civil Liability and Courts Act 2004 which includes penalties for giving false or misleading evidence in personal injury cases. In addition, random breath testing, increased resources to the Garda Traffic Corps and the roll-out of the penalty points system are expected to deliver better driver behaviour and reduced frequency of traffic accidents. These initiatives are having a positive effect on motor insurance premiums and I am confident that they will continue to do so.